Ann: Quarterly Report and Appendix 4C, page-24

Looks like they're trying to get their costs down to me?



The model is quite easy. It's based on their receivables book.

Target Revenue Yield = 20%
Target Cost of Sales = -8%
Target Cash Opex = -5%
Total EBTDA yield = 7%
Cash cost of sales includes interest, bank fees, data costs, and bad debts written-off;
Cash operating costs exclude funding program establishment costs, share based payments, depreciation and amortisation.

So if they hit their targets and get to a $1bn receivables book (they're certainly headed in the right direction) they should produce $70m in EBTDA for the year. In my opinion, this is a potential outcome for FY20 and this year could potentially be around $20m EBTDA.